One simple chart shows how retail as we knew it is dying

• Bob Bryan
 

 

 
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Retail companies are in the middle of a seismic shift.

Younger shoppers are taking over the market, and they have a penchant for online shopping. This means that older, brick-and-mortar sellers are struggling to keep up with online giants like Amazon.

Home-products maker Procter & Gamble — think Tide detergent and Pampers diapers — laid out in one simple bar chart just how huge this shift has been.

The slide, from a company presentation at an analyst conference this week, shows the monthly buying frequency of US shoppers in hypermarkets — stores with both grocery and department sections — and online.

In just seven years, shoppers have shifted from making one monthly purchase on average online, to 6.5. Meanwhile, purchases at brick-and-mortar stores dropped from 7 visits to just under 5. 

But even as traditional retailers adapt to the shift, they face the issue of added costs, which crunch profits.